AIA Life launches dementia insurance covering living and care costs

AIA Life has unveiled a dementia insurance product designed to cover living expenses and care costs that arise after a dementia diagnosis.

The insurer said Wednesday it has launched the Power 100 Dementia Insurance (renewable, no-surrender-refund type), available through AIA Life's telemarketing consultants.

The product covers diagnosis benefits at each stage of dementia progression through a range of dementia-related riders. Upon diagnosis of severe dementia, it pays up to 5 million won ($3,320) per month in living expenses along with home-care and facility care benefits.

Premiums are kept low by applying a renewable, no-surrender-refund structure across all coverage items. Customers who have put off purchasing dementia insurance due to cost can now secure coverage, while those without sufficient dementia protection can design the coverage they need at a reasonable cost.

As an example, a 60-year-old woman can structure a plan with a monthly premium in the 40,000-won range that provides 1 million won per month in living funds upon a severe dementia diagnosis, plus home-care and facility care benefits of up to 2 million won per occurrence each month.

Customers who meet certain conditions can also access dementia-specific healthcare services through partner companies, including caregiver matching for home care, customized care facility consulting and dementia trust services. The product extends beyond a simple insurance payout to support care arrangements and asset management following a dementia diagnosis.

During the initial launch period, eligible policyholders will temporarily receive support for diagnostic tests needed before dementia diagnosis and Leqembi treatment.

"We will continue to introduce products and services that support the healthy and stable retirement of our senior customers," said Yoo Sin-ok, head of AIA Life's customer division.

Meanwhile, AIA Life has been steadily expanding its senior-focused product lineup, including the AIA One-Stop Comprehensive Health Insurance, which covers diagnosis, care and living expenses related to age-related illnesses.